Ethereum (ETH) continues to experience a decline in its price as it recently tested the $4,000 resistance level, a key psychological price indicator for the cryptocurrency. Amidst this correction, bearish trends have emerged among investors on Binance.
Recent analysis CryptoQuant analyst Darkfost highlights a significant trend where Binance takers’ buy-sell ratio for Ethereum has turned “clearly negative” at $4,000. This suggests that stock market investors have mainly adopted a selling stance.
Ethereum tug of war
According to Darkfost, bearish sentiment on Binance has persisted since early November, coinciding with Ethereum approaching this critical resistance level.
The analyst noted that while this bearish sentiment can usually signal a potential reversal, Ethereum’s price movement has resisted a mighty bearish trend, driven by other influential factors.
Notably, demand for Ethereum Exchange-Traded Funds (ETFs) has increased, demonstrating growing institutional interest that continues to support Ethereum’s price action.
The surge in demand for Ethereum ETFs signals a shift in market sentiment, with institutional players increasingly influencing price movements.
Institutional interest, evidenced by a steady influx of Ethereum-focused investment products, appears to have played a key role in offsetting the selling pressure seen among retail investors on Binance.
Results and prospects on the ETH market
Ethereum has seen a significant price correction so far, dropping to just $3,616 as of today. As of this writing, the asset is trading at $3,621, down almost 6% from the last day.
It’s worth noting that these price results were unsurprising with the asset’s market capitalization dropping by over $40 billion, from the over $490 billion recorded last week on Friday to $434 billion today.
Interestingly, despite this price decline, Ethereum’s daily trading volume has shown the opposite trend, growing from under $60 billion on December 6 to currently $72 billion. Given the current market situation, it is likely that the enhance in ETH volume is due to a sell-off.
According to data Coinglass liquidated 526,828 traders in the last 24 hours, with a total liquidation amount of $1.58 billion. Of the total liquidation amount, ETH accounts for approximately $234.72 million.
Long liquidations dominate, reaching USD 208.83 million. Compact traders also saw losses in the stock, seeing $25.89 million worth of ETH liquidations.
Regardless, analysts remain bullish on Ethereum, suggesting that the current price decline is quite “healthy” for the ETH market.
$ETH stays mighty in HTF!#Ethereum the weekly well correction will be left as a RE-TEST and will be highly inflated! https://t.co/o78x8eBucf pic.twitter.com/YSixFqjuLQ
— EᴛʜᴇʀNᴀꜱʏᴏɴᴀL
(@EtherNasyonaL) December 10, 2024
Featured image created with DALL-E, chart from TradingView
